C3.1704 What is an only or main residence for PPR relief ?
PPR relief can only be claimed in relation to the taxpayer's only or main residence. The question whether a house is the only or main residence of a taxpayer for the purpose of TCGA 1992, s 222(1)(a), is in substance one of fact. The question is easily determinable where there is a single residence, which would obviously be the only residence. Where a person has two or more residences, such as a house or flat in a town and another dwelling in the country or elsewhere, the question as to which is the taxpayer's main residence may not be so easy to decide.
The question of fact still arises even where one residence is owned and the another is rented, but not where one residence is owned and the other is occupied under licence (see below).
What is the meaning of residence?
The word 'residence' is not defined by the legislation for this purpose. It has been held that 'a residence is a place where somebody lives'1. In effect, the taxpayer's main place of residence is his home and the purpose of the relief is to exempt the proceeds of a person's home from liability to capital gains tax2.
HMRC considers whether the property has as a matter of fact been a residence by reference to the quality of the occupation3. However the taxpayer's intention when moving in can also be important. Although no minimum period of occupancy is required,